Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Profitability Ratios (Summary)
Intel Corp., profitability ratios
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
- Gross Profit Margin
- The gross profit margin exhibited a consistent decline over the analyzed periods, decreasing from 56.01% in 2020 to 32.66% in 2024. This trend indicates a steady reduction in the proportion of revenue remaining after accounting for the cost of goods sold, suggesting increasing production or procurement costs or a decrease in pricing power.
- Operating Profit Margin
- The operating profit margin showed a more pronounced decline, dropping sharply from 30.41% in 2020 to a negative 21.99% in 2024. The margin decreased gradually until 2022 and then collapsed significantly, reflecting rising operating expenses or diminishing operating income, ultimately resulting in operating losses in 2024.
- Net Profit Margin
- Net profit margin followed a downward trajectory similar to operating margin, decreasing from 26.84% in 2020 to a negative 35.32% in 2024. This decline reflected worsening overall profitability after all expenses, including taxes and interest, and suggests significant challenges impacting the bottom line by the end of the period.
- Return on Equity (ROE)
- ROE declined substantially from 25.79% in 2020 to -18.89% in 2024. This measure reveals deteriorating effectiveness in generating profits from shareholders' investments, transitioning into negative returns in the final year, which signals value destruction for equity holders.
- Return on Assets (ROA)
- The return on assets showed a persistent decrease from 13.65% in 2020 to -9.55% in 2024. This trend highlights declining efficiency in utilizing the company’s assets to generate net earnings, culminating in negative returns that point to operational inefficiencies or asset underperformance.
Return on Sales
Return on Investment
Gross Profit Margin
Intel Corp., gross profit margin calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross margin | ||||||
| Net revenue | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 2024 Calculation
Gross profit margin = 100 × Gross margin ÷ Net revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data over the observed periods reveals distinct trends in key profitability metrics. Net revenue demonstrates a continuous downward trajectory from 77,867 million US dollars in late 2020 to 53,101 million US dollars by the end of 2024. This reflects a significant reduction in revenue generation over these years.
Concurrent with the revenue decline, gross margin also follows a decreasing trend, starting at 43,612 million US dollars in 2020 and dropping to 17,345 million US dollars by the end of 2024. This reduction indicates a diminishing absolute profit from core operations before accounting for other expenses.
The gross profit margin percentage, representing gross margin as a proportion of net revenue, similarly shows a pronounced decline from 56.01% in 2020 to 32.66% in 2024. This trend suggests a weakening efficiency or increased cost pressures relative to revenue, resulting in lower profitability percentages over time.
- Revenue Trend
- Decreased steadily over five years, with a total reduction of approximately 31.8% from 2020 to 2024.
- Gross Margin Trend
- Substantial decrease, indicating worsening gross profit in absolute terms by roughly 60.2% over the same period.
- Gross Profit Margin Percentage
- Declined from above 56% to nearly 33%, reflecting reduced margin efficiency or increased cost ratio relative to revenue.
Overall, the data highlights a sustained decline in both the scale of revenue and profitability, with gross profit margins contracting significantly. This pattern could indicate challenges in controlling costs or increased competition affecting pricing power. The company may need to investigate operational efficiencies or strategic adjustments to address these downward trends.
Operating Profit Margin
Intel Corp., operating profit margin calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | ||||||
| Net revenue | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Operating Profit Margin, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Operating Profit Margin, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 2024 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Net revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Operating Income (Loss)
- The operating income demonstrates a pronounced declining trend over the five-year period. Starting from a robust figure of 23,678 million US dollars in 2020, it decreased to 19,456 million in 2021, followed by a sharp reduction to 2,334 million in 2022. The downward trajectory continues with near breakeven results in 2023 at 93 million, culminating in a significant operating loss of 11,678 million in 2024.
- Net Revenue
- Net revenue exhibits relative stability in 2020 and 2021, with a slight increase from 77,867 million to 79,024 million US dollars. However, from 2022 onwards, the revenue shows a consistent decline, falling to 63,054 million in 2022, then to 54,228 million in 2023, and slightly further to 53,101 million in 2024.
- Operating Profit Margin
- The operating profit margin reveals a significant contraction throughout the period. It begins at a strong margin of 30.41% in 2020, decreases noticeably to 24.62% in 2021, and then sharply plunges to 3.7% in 2022. By 2023, the margin nearly reaches zero at 0.17%, and by 2024, it turns negative, reaching -21.99%, reflecting the company’s operating loss situation in the most recent year.
- Overall Analysis
- The data indicates considerable financial deterioration over the five years, with declining revenue after 2021 and escalating operating losses from 2022 onward. Despite stable revenues through early periods, margins contracted sharply, suggesting increasing cost pressures or reduced pricing power. The negative operating margin and loss by 2024 point to a challenging operating environment requiring strategic adjustments.
Net Profit Margin
Intel Corp., net profit margin calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Intel | ||||||
| Net revenue | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Net Profit Margin, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Net Profit Margin, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 2024 Calculation
Net profit margin = 100 × Net income (loss) attributable to Intel ÷ Net revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data over the analyzed periods indicate a clear trend of declining profitability and revenue for the company. Net revenue shows a gradual decrease from 77,867 million US dollars in the period ending December 26, 2020, to 53,101 million US dollars in the period ending December 28, 2024. This downward trend reflects a reduction in sales or operational income over the five-year span.
Net income attributable to the company has exhibited a more pronounced decline, starting at 20,899 million US dollars in 2020 and progressively decreasing to a loss of 18,756 million US dollars by 2024. This shift from positive net income to a significant net loss underscores growing financial challenges or increased expenses that have not been offset by revenues.
The net profit margin, expressed as a percentage of revenue, corroborates the trends observed in net income and revenue. It decreased substantially from 26.84% in 2020 to -35.32% in 2024. The margin shrank notably in the middle years and turned negative by 2024, which indicates that the company’s costs and expenses exceeded revenues, leading to a lack of profitability.
Overall, the data reveals a sustained decline in financial performance. Key indicators—net revenue, net income, and net profit margin—all reflect deteriorating profitability and monetary outcomes, suggesting the need for strategic review and possible operational adjustments to address these challenges.
Return on Equity (ROE)
Intel Corp., ROE calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Intel | ||||||
| Total Intel stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| ROE, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| ROE, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 2024 Calculation
ROE = 100 × Net income (loss) attributable to Intel ÷ Total Intel stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data reveals a significant decline in net income attributable to Intel over the five-year period. Initially, net income stood at $20,899 million in 2020, followed by a slight decrease to $19,868 million in 2021. A steep reduction is observed in 2022 and 2023, with net income dropping to $8,014 million and $1,689 million, respectively. The trend culminates in a net loss of $18,756 million in 2024, indicating a substantial financial downturn.
Conversely, total Intel stockholders’ equity shows a general upward trend from 2020 to 2023. Beginning at $81,038 million in 2020, equity increased steadily to $95,391 million in 2021, $101,423 million in 2022, and $105,590 million in 2023. However, there is a slight decline to $99,270 million in 2024, corresponding with the net loss reported in the same year.
The return on equity (ROE) mirrors the fluctuations in net income, starting at a strong 25.79% in 2020 and progressively declining each year thereafter. ROE decreased to 20.83% in 2021, 7.9% in 2022, and 1.6% in 2023, eventually turning negative to -18.89% in 2024. This reflects diminishing profitability relative to shareholders’ equity and suggests challenges in generating returns for investors.
Overall, the data highlights a deteriorating profit performance from 2020 through 2024, with net income and ROE both experiencing sharp declines. Despite initial growth in stockholders' equity, the recent drop in 2024 may suggest potential impacts from operating losses or other financial pressures on the company's equity base.
Return on Assets (ROA)
Intel Corp., ROA calculation, comparison to benchmarks
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Intel | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| ROA, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| ROA, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
1 2024 Calculation
ROA = 100 × Net income (loss) attributable to Intel ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to Intel
- The net income demonstrates a declining trend over the five-year period. Starting at $20,899 million in 2020, it decreased slightly to $19,868 million in 2021, followed by a significant drop to $8,014 million in 2022. The decline continued sharply with net income falling to $1,689 million in 2023, and ultimately turning into a net loss of $18,756 million by the end of 2024. This progression indicates deteriorating profitability, culminating in a substantial loss in the latest reported year.
- Total Assets
- Total assets show a consistent upward trend every year from 2020 to 2024. The asset base grew from $153,091 million in 2020 to $196,485 million in 2024. This steady increase suggests ongoing investment or expansion in asset holdings, though it contrasts with the declining profitability seen in net income.
- Return on Assets (ROA)
- ROA declined markedly through the period, beginning at 13.65% in 2020 and decreasing to 11.8% in 2021. The downward trend accelerated thereafter, with ROA dropping to 4.4% in 2022 and further to 0.88% in 2023. By 2024, ROA turned negative at -9.55%, reflecting the net loss and indicating a negative return on the asset base. This change points to inefficiencies or challenges in generating returns from the company’s assets.
- Summary
- Over the five years analyzed, the company experienced a deteriorating financial performance. Despite steady growth in total assets, both net income and return on assets declined significantly, resulting in a net loss and negative ROA by the most recent year. The divergence between increasing asset size and falling profitability may suggest issues with asset utilization or increased costs impacting earnings, which could warrant further detailed investigation.